Cameco to buy Nukem Energy

Under an agreement signed today with Advent, Cameco will pay Advent and other shareholders €105 million ($135 million) on closing of the deal, subject to certain adjustments. Cameco said that it would take on "the obligation for the company's net debt of €127 million ($163 million) as of 1 January 2012." However, it said that Nukem is expected to "significantly reduce the balance of its debt prior to closing" as a result of cash generated from its ongoing business activities.

The agreement also includes provisions that would provide Advent with a share of Nukem's future earnings under certain conditions until the end of 2014. The agreement is expected to close in the fourth quarter of 2012, subject to regulatory approvals.

Nukem, established in 1960, has sales of some 12 million pounds of uranium (4615 tU) in 2011 and expects to sell between 10 million and 15 million pounds (3845 to 5770 tU) in 2012. Its assets include about 4.5 million pounds of uranium (1730 tU) that remains available to Nukem under the high-enriched uranium (HEU) commercial agreement through to 2013.

Cameco president and CEO Tim Gitzel said, "This acquisition complements Cameco's business by strengthening our position in nuclear fuel markets and improving our access to unconventional and secondary sources of supply."

Nukem will continue to operate as an independent company following the acquisition, Cameco stated.